Business Recovery

Resolve secures Gobsmack pre-pack sale

Resolve said the sale includes 15 employees transferring over to Endsleigh, with three additional roles being saved from a subsidiary of the company

Resolve has announced it has secured the pre-pack sale of the principal elements of the business and assets of Gobsmack Holdings Limited, a provider of a white labelled customer engagement platform.

The business and certain assets have been sold to Endsleigh Insurance Services , a Cheltenham-based UK insurance intermediary specialising in the student, education, graduate and sport markets.

Resolve said the sale includes 15 employees transferring over to Endsleigh, with three additional roles being saved from a subsidiary of the company.

Established in 2015, Gobsmack started life providing a highly differentiated, white label, cloud-based product suite, which included a client branded Customer Engagement Centre, a sophisticated Digital Wallet, a cashback module, and a marketplace to blue-chip companies.

Resolve said the Covid-19 pandemic not only had a “major impact” on the company’s ability to convert its future pipeline opportunities, but also an impact on its relationship with its pre-existing corporate partners, whose focus was “diverted away from developing their programmes with Gobsmack”.

As such, with “revenues below forecast” and unable to secure additional funding, the company appointed Resolve to provide ad-hoc insolvency advice to the board, eventually leading to a pre-pack sale of the company, after reviewing a raft of options.

Simon Jagger, director at Resolve, said: “We are pleased with the outcome of the sale of Gobsmack, especially given we were able to secure jobs for 18 employees during this challenging economic environment. We wish the new owners all the best and every success for the future.”

Alison Meckiffe, CEO at Endsleigh Insurance Services, added: “We are delighted to have secured the acquisition for Gobsmack’s staff and assets. Both provide a significant addition to our existing business and will complement our ongoing operations.”

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